Featured Product

    ECB Report on Financial Structures in Euro Area Financial Sector

    October 23, 2017

    ECB published a report on financial structures in the euro area, which reviews the main structural features of, and developments in, the broader euro area financial sector. The report covers the banking sector (monetary financial institutions, or MFIs), insurance corporations and pension funds, and other financial intermediaries (OFIs).

    The first chapter of the report presents the evolution of the overall structure and composition of the financial sector, also analyzing the interconnectedness across different parts of the financial sector to assess possible structural risks to financial stability. The second chapter presents structural developments in the euro area banking sector, providing a wide set of structural information from both a cross-sectional perspective (that is, different banking types, business models, etc.) and a time perspective. The third chapter discusses structural developments in euro area insurance corporations and pension funds. Although the sector continued to grow, it remained strongly concentrated in a relatively small number of countries, with France and Germany each accounting for more than a quarter of this sector in the euro area, followed by the Netherlands (18%) and Italy (10%). The fourth and final chapter reviews the structural features of the euro area non-bank financial sector, including all other financial intermediaries, except insurers and pension funds. Structural features of different parts of the non-bank financial sector are outlined in more detail, namely for non-money market investment funds, money market funds, and financial vehicle corporations.

    The report shows ongoing consolidation in the banking sector while assets in the investment fund sector grew by 7% in 2016. Euro area banks’ median common equity tier 1 ratio rose to 15.4 % in 2016, from 14.4 % in 2015. While the median nonperforming loan (NPL) ratio declined further, the stock of NPLs remained persistently high in a number of countries. Solvency position of the insurers and pension funds is well above the requirements of the EU’s Solvency II supervisory regime. This report serves as a complement to the semi-annual ECB Financial Stability Review (FSR), which focuses more on cyclical factors.

     

    Related Link: Report on Financial Structures (PDF)

    Keywords: Europe, EU, Banking, Insurance, Securities, Basel III, Solvency II, ECB

    Featured Experts
    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469